Want to cut down on your nanny replacements? One way to do that is to make sure your clients have valid, thorough and accurate employment agreements with their nannies.
Having all the details laid out from the beginning of a family’s relationship with their nanny can save headaches and, ultimately, the possibility of your agency needing to replace their nanny with a new one.
Where to Get a Good Employment Agreement (Hint: It’s not the Internet)
Some agencies like to offer clients templated employment agreements as a part of their service. Let me tell you why you DON’T want to do that, but should instead refer them to an attorney, licensed in the client’s state, who understands household employment law.
Household employment law, as with the law in general, is complicated. It varies from year to year, state to state, county to county, and even city to city. Keeping up with the law and all these unique requirements and updates is a difficult process.
As the saying goes, “You don’t know what you don’t know.” And what you don’t know can cost you dearly if you’re seen to be advising clients on legal matters like minimum wage, overtime law, or vacation and paid sick leave, and get it wrong. Additionally, in some states, if you exercise control over the worker’s hours, wages or working conditions – and providing sample contract terms can be evidence of such control – your agency could be jointly liable for the employee’s wages if something goes wrong.
Protect your agency from liability. Instead of giving advice that could be construed as legal advice, stay on the safe side and refer clients to an attorney who can take it from there.
Set Your Clients Up for Success
If your clients are in California, Legally Nanny can help them with their employment agreements as well as setting them up as legal employers and advising them on what they need to know. Remember, nannies are always employees, never independent contractors.
If your agency and clients are outside of California, find an attorney in your state who specializes in this type of law, so you can make an informed referral for your clients. If you’re not sure how to find one, contact your local Bar Association for guidance.
What Should an Employment Agreement Include?
A good employment agreement should lay everything out in black and white so that both families and their nannies understand their roles. It can feel awkward to some families to make things so formal with a person who will be so intimately involved in their family’s lives, but it can prevent misunderstandings that lead to dissatisfaction on both sides. It should include the nanny’s schedule, pay rate, any holidays, sick time, confidentiality expectations, and anything else that’s important to your clients.
Change is Inevitable – Be Prepared
It’s important to note that any employment agreement is a living document that your clients will need to revisit on a regular basis. As employment laws shift in their areas, they and their attorneys will need to make sure that the terms of the agreement are still legal. The same is true if the nature of the employment relationship changes. For example, if the nanny transitions into more of a housekeeper than a caregiver, overtime laws may be different and may need to be reflected accordingly.
What About Agency-Client Agreements?
Your agency’s client agreement is a pillar of your business. In the same way that a properly written employment agreement can save your clients heartache with their nannies, your client agreement should protect you from liability as well as client dissatisfaction.
Details matter, so make sure your client agreement is clear and unambiguous about the role your agency plays, and the role it doesn’t play. That is, be very clear that the client – not your agency – will be the employer of the nanny. This is critical to protecting your agency if the family doesn’t follow employment laws, despite your best efforts to encourage them to work with an attorney to ensure they do.
Legally Nanny is also happy to help agencies develop or refine their client agreements, so give us a call!
Bob King is an attorney and founder of Legally Nanny®, the leading employment law firm representing home care agencies, nanny agencies and household employers. Bob is APNA’s former General Counsel and a long-time APNA member.